What happened
Shares of public relations software company Cision (CISN) climbed as much as 19.6% on Tuesday. As of 12:25 p.m. EDT, the stock was up 18.9%.
The stock's jump follows news that the company entered an agreement to be acquired by an affiliate of investment firm Platinum Equity.
Image source: Getty Images.
So what
Cision, the owner of public relations platform PR Newswire, entered a definitive agreement with Platinum Equity to be acquired for $2.74 billion in cash. This translates to $10 per share -- a 34% premium over the stock's 60-day volume-weighted average price ending Oct. 21. The agreement has been unanimously approved by Cision's board.
"This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value," explained Cision CEO Kevin Akeroyd in a press release about the deal.
Now what
The deal is expected to close sometime during the first quarter of 2020 and is "subject to approval by Cision Ltd.'s shareholders, along with the satisfaction of customary closing conditions and antitrust regulatory approvals, as necessary," Cision said.
